Latest / Omni Talk Retail / Kroger's E-Commerce Identity Crisis? | Fast Five Shorts
Transcript
- 0:00Kroger
- 0:00plans
- 0:00to
- 0:00use
- 0:01DoorDash's
- 0:02Dashmart
- 0:03service
- 0:03for
- 0:03delivery.
- 0:04According
- 0:04to
- 0:04GroceryDive,
- 0:05Kroger
- 0:05plans
- 0:06to
- 0:06use
- 0:06Dashmart
- 0:06fulfillment
- 0:07services,
- 0:07a
- 0:08new
- 0:08online
- 0:08delivery
- 0:09service
- 0:09from
- 0:09DoorDash
- 0:10that
- 0:10relies
- 0:11on
- 0:11delivery
- 0:11focused
- 0:12stores
- 0:12as
- 0:13it
- 0:13operates
- 0:14across
- 0:14the
- 0:14country.
- 0:14The
- 0:15grocer,
- 0:15which
- 0:16plans
- 0:16to
- 0:16offer
- 0:16groceries
- 0:17and
- 0:17household
- 0:17items
- 0:18through
- 0:18the
- 0:18service,
- 0:18will
- 0:19join
- 0:19other
- 0:19retailers
- 0:20like
- 0:20CVS
- 0:20which
- 0:20are
- 0:21currently
- 0:21using
- 0:21the
- 0:21DoorDash
- 0:22service.
- 0:23The
- 0:23announcement
- 0:24comes
- 0:24on
- 0:24the
- 0:24heels
- 0:24of
- 0:24Kroger
- 0:25expanding
- 0:25DoorDash
- 0:26delivery
- 0:26to
- 0:26all
- 0:272700
- 0:27of
- 0:28its
- 0:28stores
- 0:28and
- 0:28and
- 0:29highlights
- 0:29the
- 0:29grocer's
- 0:30reliance
- 0:30on
- 0:30third
- 0:30party
- 0:31delivery
- 0:31companies
- 0:32to
- 0:32help
- 0:32power
- 0:32its
- 0:33e
- 0:33commerce
- 0:33business.
- 0:34And
- 0:34also
- 0:35after
- 0:35executives
- 0:36said
- 0:36that
- 0:36they
- 0:36are
- 0:37reexamining
- 0:37Kroger's
- 0:38Ocado
- 0:38automated
- 0:39warehousing
- 0:39infrastructure.
- 0:40Chris,
- 0:41what
- 0:41do
- 0:41you
- 0:41think
- 0:41that
- 0:42Kroger's
- 0:42increasing
- 0:43ties
- 0:43with
- 0:43DoorDash
- 0:44say
- 0:44about
- 0:45its
- 0:45e
- 0:45commerce
- 0:46strategy?
- 0:47Oh,
- 0:48and
- 0:48I
- 0:48worry
- 0:48it
- 0:49tells,
- 0:49it
- 0:49says
- 0:49a
- 0:49lot
- 0:49and
- 0:50I
- 0:50worry,
- 0:50it
- 0:50tells
- 0:50me
- 0:50that
- 0:51Kroger's
- 0:52e
- 0:52commerce
- 0:52strategy
- 0:52is
- 0:53a
- 0:53little
- 0:53bit
- 0:53lost
- 0:53and
- 0:53it's
- 0:54trying
- 0:54to
- 0:54grapple
- 0:55in
- 0:55the
- 0:55dark
- 0:55here,
- 0:55you
- 0:56know,
- 0:56trying
- 0:56to
- 0:56find
- 0:56its
- 0:56way
- 0:56in
- 0:57the
- 0:57dark
- 0:57here.
- 0:58And
- 0:58when
- 0:58I
- 0:58say
- 0:59that,
- 0:59I
- 0:59say
- 0:59that,
- 1:00you
- 1:00know,
- 1:00and
- 1:00totally
- 1:01understand
- 1:01it.
- 1:01Right.
- 1:02Like
- 1:02I
- 1:03could
- 1:03see
- 1:03myself
- 1:03falling
- 1:03into
- 1:04the
- 1:04same
- 1:04trap.
- 1:04Like,
- 1:05because
- 1:05there's
- 1:05a
- 1:06lot
- 1:06of
- 1:06psychology
- 1:06in
- 1:06how
- 1:07the
- 1:07decisions
- 1:07are
- 1:07coming
- 1:07out
- 1:08here
- 1:08or
- 1:08how
- 1:08the
- 1:08headlines
- 1:09are
- 1:09being
- 1:10put
- 1:10into
- 1:10the
- 1:10media.
- 1:11So
- 1:11for
- 1:11example,
- 1:11like,
- 1:12you
- 1:12know,
- 1:12and
- 1:12that's
- 1:13why
- 1:13we
- 1:13started
- 1:13Omni
- 1:13Talk
- 1:14is
- 1:14to
- 1:14go
- 1:14behind
- 1:14the
- 1:14headlines
- 1:15and
- 1:15the
- 1:15psychology
- 1:15of
- 1:16how
- 1:16the
- 1:16executives
- 1:16are
- 1:16really
- 1:17trying
- 1:17to
- 1:17think.
- 1:17And
- 1:17so,
- 1:18so
- 1:18like
- 1:19step
- 1:19back
- 1:20for
- 1:20a
- 1:20sec.
- 1:20Think.
- 1:21Old
- 1:21regime
- 1:22makes
- 1:22a
- 1:22huge
- 1:22bet
- 1:23on
- 1:23Ocado.
- 1:24New
- 1:24regime
- 1:25comes
- 1:25in,
- 1:26they
- 1:26don't
- 1:26like
- 1:26how
- 1:26the
- 1:26results
- 1:27are
- 1:27playing
- 1:27out.
- 1:27So
- 1:28now
- 1:28they're
- 1:28swinging
- 1:29the
- 1:29pendulum
- 1:29and
- 1:30they're
- 1:30going
- 1:30all
- 1:31in
- 1:31on
- 1:31two
- 1:31things.
- 1:32Store
- 1:32delivery
- 1:33support
- 1:34with
- 1:34Instacart
- 1:35and
- 1:35DoorDash.
- 1:35They've
- 1:35added
- 1:36DoorDash
- 1:36to
- 1:36the
- 1:36mix
- 1:37and
- 1:37now
- 1:37they're
- 1:37going
- 1:38into
- 1:38like
- 1:38what
- 1:38is
- 1:38essentially
- 1:39a
- 1:39micro
- 1:39warehousing
- 1:40support
- 1:40with
- 1:41the
- 1:41dashmark
- 1:42concept.
- 1:42So
- 1:42that's
- 1:42taking
- 1:43it
- 1:43out
- 1:43of
- 1:43the
- 1:43store
- 1:43and
- 1:44going
- 1:44with
- 1:44the
- 1:44dashmart.
- 1:45So
- 1:45which
- 1:45is
- 1:46essentially
- 1:46for
- 1:47the
- 1:47most
- 1:47part
- 1:47from
- 1:47what
- 1:47we
- 1:48know,
- 1:48probably
- 1:48a
- 1:48manual
- 1:49picking
- 1:49small
- 1:50warehouse
- 1:50nearby
- 1:51that
- 1:51you,
- 1:51you
- 1:52can
- 1:52access
- 1:52quickly.
- 1:53So
- 1:53they're,
- 1:53they're
- 1:53swinging
- 1:54the
- 1:54pendulum
- 1:54completely.
- 1:55But
- 1:55the
- 1:56smarter
- 1:56move
- 1:56to
- 1:56me
- 1:57is
- 1:57to
- 1:58be
- 1:58if
- 1:58I'm
- 1:58Kroger
- 1:59and
- 1:59I'm
- 1:59an
- 1:59executive
- 1:59at
- 2:00Kroger,
- 2:00I'm
- 2:00asking
- 2:00myself
- 2:01where
- 2:01do
- 2:02I
- 2:02want
- 2:02our
- 2:02network
- 2:02to
- 2:02really
- 2:03be
- 2:03in
- 2:0310
- 2:03years?
- 2:04Because
- 2:04I
- 2:04guarantee
- 2:05the
- 2:06answer
- 2:06to
- 2:06that
- 2:07for
- 2:07everyone,
- 2:08not
- 2:08just
- 2:08Kroger,
- 2:09but
- 2:09for
- 2:09many
- 2:09people
- 2:09in
- 2:10the
- 2:10grocery
- 2:10industry
- 2:11should
- 2:11not
- 2:11be
- 2:12running
- 2:12through
- 2:12Doordash
- 2:13and
- 2:13Instacart's
- 2:14marketplaces
- 2:14at
- 2:15all.
- 2:15At
- 2:16best
- 2:16they
- 2:16should
- 2:16be
- 2:16white
- 2:17label
- 2:17delivery
- 2:18providers
- 2:18for
- 2:18you,
- 2:19which
- 2:19I
- 2:19think
- 2:19is
- 2:19very
- 2:19smart
- 2:20if
- 2:20you
- 2:20do
- 2:20it
- 2:20that
- 2:20way
- 2:21because.
- 2:23Because
- 2:23you
- 2:23have
- 2:23to
- 2:24start
- 2:24figuring
- 2:25out
- 2:25how
- 2:25to
- 2:25fulfill
- 2:26the
- 2:26demand
- 2:26yourselves
- 2:27and
- 2:27how
- 2:28to
- 2:28make
- 2:28it
- 2:28economical
- 2:29with
- 2:29the
- 2:30right
- 2:30technology
- 2:30and
- 2:31automation
- 2:31running
- 2:32your
- 2:32warehouses
- 2:33or
- 2:33running
- 2:33your
- 2:33partner's
- 2:34warehouses.
- 2:34So.
- 2:35Because
- 2:35if
- 2:35you
- 2:35don't,
- 2:36and
- 2:36here's
- 2:36the
- 2:36big
- 2:37if,
- 2:37if
- 2:38you
- 2:38don't,
- 2:38Walmart
- 2:39and
- 2:39Amazon
- 2:40are
- 2:40going
- 2:40to
- 2:40figure
- 2:40that
- 2:40out
- 2:41and
- 2:41they're
- 2:41going
- 2:41to
- 2:41drive
- 2:42the
- 2:42volume
- 2:42towards
- 2:43e
- 2:43commerce
- 2:43to
- 2:44them
- 2:44in
- 2:44the
- 2:44long
- 2:44run
- 2:45because
- 2:45they're
- 2:45going
- 2:45to
- 2:45know
- 2:45how
- 2:45to
- 2:45do
- 2:45it
- 2:46cheaper
- 2:46and
- 2:46more
- 2:47efficiently.
- 2:48Yeah,
- 2:48I
- 2:49think
- 2:50your
- 2:50thinking
- 2:51is
- 2:51right
- 2:51in
- 2:51line
- 2:51for
- 2:52where
- 2:52I
- 2:52was
- 2:52on
- 2:53this
- 2:53too.
- 2:53I
- 2:53mean
- 2:53for
- 2:54me
- 2:54I
- 2:54start
- 2:55to
- 2:55think
- 2:55about
- 2:55what
- 2:56does
- 2:56this
- 2:56mean
- 2:56for
- 2:56the
- 2:57store
- 2:57operations.
- 2:57We're
- 2:58hearing
- 2:58this
- 2:58from
- 2:58a
- 2:58lot
- 2:58of
- 2:58retailers,
- 2:59not
- 2:59just
- 2:59Kroger,
- 3:00that
- 3:00you
- 3:00know,
- 3:00they're
- 3:01looking
- 3:01at
- 3:01how
- 3:02to
- 3:02fulfill
- 3:02orders
- 3:02from
- 3:03the
- 3:03store
- 3:03now
- 3:04because
- 3:04it's
- 3:04more
- 3:05efficient
- 3:05because
- 3:05they're
- 3:06not
- 3:06reliant
- 3:06on
- 3:06a
- 3:07third
- 3:07party
- 3:07as
- 3:08much.
- 3:09And
- 3:09it
- 3:09doesn't
- 3:10put,
- 3:10you
- 3:10know,
- 3:10potentially
- 3:10like
- 3:11an
- 3:11Instacart,
- 3:11like
- 3:12shoppers
- 3:12walking
- 3:12through
- 3:12the
- 3:13stores
- 3:13and
- 3:13crowding
- 3:13aisles.
- 3:14But
- 3:15I
- 3:15think
- 3:15what
- 3:15I'm
- 3:16interested
- 3:16in
- 3:16seeing
- 3:16here
- 3:17is
- 3:17they
- 3:17talk
- 3:18about
- 3:18reevaluating,
- 3:19reevaluating
- 3:20Ocado
- 3:21and
- 3:22the
- 3:22independent
- 3:23warehouses.
- 3:23I'm
- 3:24wondering
- 3:24if
- 3:24we
- 3:24don't
- 3:25start
- 3:25to
- 3:25see
- 3:25them
- 3:26push
- 3:26Ocado
- 3:27to
- 3:27pivot
- 3:27towards
- 3:28like
- 3:28the
- 3:28Ocado
- 3:29Zoom
- 3:29micro
- 3:29fulfillment
- 3:30platforms
- 3:30that
- 3:31they're
- 3:31starting
- 3:31to
- 3:31put
- 3:31in
- 3:31their
- 3:32stores
- 3:32like
- 3:32you're
- 3:32talking
- 3:33about.
- 3:33Because
- 3:33all
- 3:34of
- 3:34these,
- 3:34all
- 3:35of
- 3:35this
- 3:35demand
- 3:35for
- 3:36stores
- 3:36they're
- 3:36not
- 3:36prepared
- 3:37for
- 3:37right
- 3:37now.
- 3:37They
- 3:38have
- 3:38to
- 3:38start
- 3:38thinking
- 3:39about
- 3:39automation.
- 3:39Whether
- 3:40that's
- 3:40testing
- 3:41the
- 3:41likes
- 3:41of
- 3:41a
- 3:41fabric
- 3:41or
- 3:42a
- 3:42dramatic.
- 3:42But
- 3:42you
- 3:43know,
- 3:43being
- 3:43able
- 3:43to
- 3:44fulfill
- 3:44these
- 3:44orders
- 3:45at
- 3:45a
- 3:45frequency
- 3:46like
- 3:46fabric.
- 3:47Remember
- 3:47the
- 3:47save
- 3:47a
- 3:48Lot
- 3:48store
- 3:48we
- 3:48went
- 3:48to?
- 3:48Like
- 3:48they
- 3:49were
- 3:49fulfilling
- 3:49orders.
- 3:50You
- 3:50could
- 3:50do
- 3:50a
- 3:5050
- 3:50item
- 3:51grocery
- 3:51order
- 3:52in
- 3:52six
- 3:52to
- 3:52eight
- 3:52minutes.
- 3:53Like
- 3:53that's.
- 3:54You
- 3:54cannot
- 3:55do
- 3:55that
- 3:55with
- 3:55your
- 3:55human
- 3:56workforce
- 3:57or
- 3:57with,
- 3:57you
- 3:58know,
- 3:58a
- 3:58third
- 3:58party
- 3:58coming
- 3:59in.
- 3:59I
- 3:59think
- 3:59that's
- 4:00what
- 4:00I'm
- 4:00really
- 4:00curious
- 4:01to
- 4:01see
- 4:01is,
- 4:01is
- 4:01does
- 4:02this
- 4:02cause
- 4:03the
- 4:03retailers
- 4:04to
- 4:04invest
- 4:05more
- 4:05in
- 4:05automation
- 4:06in
- 4:06the
- 4:06back
- 4:07of
- 4:07house
- 4:07so
- 4:07that
- 4:08they
- 4:08can
- 4:08deploy
- 4:08their
- 4:09own
- 4:09workforce
- 4:10either,
- 4:10you
- 4:10know,
- 4:10help
- 4:11get
- 4:11orders
- 4:12ready
- 4:12for
- 4:12the
- 4:12third
- 4:12party
- 4:13DoorDash
- 4:13delivery
- 4:14providers
- 4:15or
- 4:15start
- 4:16to
- 4:16explore
- 4:17doing
- 4:17the
- 4:17delivery
- 4:18themselves
- 4:18too?
- 4:18I
- 4:19think
- 4:19you
- 4:19have
- 4:19to
- 4:19start
- 4:20looking
- 4:20at
- 4:20how
- 4:20you're
- 4:21making
- 4:21your,
- 4:21your
- 4:22store
- 4:22operations
- 4:22run
- 4:23more
- 4:23smoothly
- 4:23and
- 4:24your
- 4:24back
- 4:24of
- 4:24house
- 4:24run
- 4:25smarter
- 4:25in
- 4:25order
- 4:26to
- 4:26fulfill
- 4:26this.
- 4:26Either
- 4:27way
- 4:27to
- 4:27have
- 4:27success
- 4:27no
- 4:28matter
- 4:28who
- 4:28your
- 4:28third
- 4:28party
- 4:29provider
- 4:29is.
- 4:30Yeah,
- 4:31and
- 4:31a
- 4:31couple
- 4:31of
- 4:31points
- 4:31of
- 4:32clarification
- 4:32too.
- 4:32So
- 4:32Dashmar
- 4:33is
- 4:33actually
- 4:33they're
- 4:33running
- 4:34the
- 4:34warehouses
- 4:34themselves
- 4:35so
- 4:35they're
- 4:36taking
- 4:36the
- 4:36in
- 4:36store
- 4:37picking
- 4:37phenomenon
- 4:37out
- 4:38of
- 4:38this.
- 4:38So
- 4:38that's
- 4:38one
- 4:39important,
- 4:39that's
- 4:40important
- 4:40to
- 4:40call
- 4:40out
- 4:40and
- 4:40make
- 4:41sure.
- 4:41But,
- 4:41but
- 4:41they
- 4:41are
- 4:41still
- 4:41using
- 4:42DoorDash
- 4:42too
- 4:42for
- 4:42the
- 4:42in
- 4:43store
- 4:43picking.
- 4:43So
- 4:43that's
- 4:43a,
- 4:44it's,
- 4:44it's
- 4:44an
- 4:44interesting
- 4:44point.
- 4:45The
- 4:45other
- 4:45point
- 4:45I'd
- 4:46mention
- 4:46though
- 4:46is
- 4:47if
- 4:47you
- 4:47step
- 4:47back
- 4:48from
- 4:48the
- 4:48executive
- 4:48position,
- 4:49they're
- 4:50not
- 4:50likely
- 4:50going
- 4:51to
- 4:51look
- 4:51at
- 4:51other
- 4:52solutions
- 4:52providers
- 4:53on
- 4:53the
- 4:53technology
- 4:53side
- 4:54because
- 4:54they're
- 4:54so,
- 4:55you
- 4:55know
- 4:55they're
- 4:56in
- 4:56a
- 4:56partnership
- 4:56with
- 4:57Ocado.
- 4:57Right.
- 4:58But
- 4:58that,
- 4:58that
- 4:58makes
- 4:59me
- 4:59think
- 4:59like
- 5:00yes,
- 5:00you
- 5:00should
- 5:00be
- 5:00looking
- 5:01at
- 5:01what
- 5:01does
- 5:02the
- 5:02network
- 5:02need
- 5:02to
- 5:03support,
- 5:03how
- 5:03are
- 5:03you
- 5:04going
- 5:04to
- 5:04drive
- 5:04the
- 5:04most
- 5:05volume
- 5:05through
- 5:05whatever
- 5:06automation
- 5:06you
- 5:07have
- 5:07running
- 5:07through
- 5:07Ocado.
- 5:08And,
- 5:08and
- 5:08I'd
- 5:09be
- 5:09pulling
- 5:09back
- 5:09like
- 5:10crazy
- 5:10my
- 5:11partnership
- 5:11with
- 5:11Instacart
- 5:12and
- 5:12DoorDash
- 5:13in
- 5:13those
- 5:13markets
- 5:14where
- 5:14I've
- 5:14got
- 5:14this
- 5:15infrastructure
- 5:15set
- 5:16up.
- 5:16Because
- 5:16that's
- 5:17what
- 5:17it's
- 5:17there
- 5:17for
- 5:18and
- 5:18that's
- 5:18what
- 5:18it's
- 5:18designed
- 5:19to
- 5:19do.
- 5:20Yeah,
- 5:20absolutely.